---------- Forwarded message ----------
From: Press Information Bureau Ministry of I&B <pib.kolkata@gmail.com>
Date: Fri, Feb 26, 2010 at 1:34 PM
Subject: General Budget 2010-11 part2
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET: 2010-11
FDI receives equity inflows of us $ 20.9 billion during April-December 2009
New Delhi: February 26, 2010.
Shri Pranab Mukherjee, Union Finance Minister, while presenting the
Union Budget in Lok Sabha today, said that the foreign direct
investment (FDI) inflows during the year have been steady in spite of
the decline in global capital flows. India received FDI equity inflows
of US $ 20.9 billion during April-December 2009.
The government has taken a number of steps to simplify the FDI regime,
to make it easily comprehensible to foreign investors. For the first
time, both ownership and control have been recognized as central to
the FDI policy, and methodology for calculation of indirect foreign
investment in Indian companies have been clearly defined. A consistent
policy on downstream investment has also been formulated. Another
major initiative has been the complete liberalization of pricing and
payment of technology transfer fee, trademark, brand name and royalty
payments. These payments can now be made under the automatic route.
The Minister said that the government also intends to make the FDI
policy user-friendly by consolidating all prior regulations and
guidelines into one comprehensive document. This would enhance clarity
and predictability of our FDI policy to foreign investors.
bsc/rj/mrs/6/dk/kol/13:30 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET 2010-11
Summary of Union Budget 2010-11
New Delhi: February 26, 2010.
The Union Budget this year has aimed to focus on inclusive growth and
insuring food security. These concerns for aam aadami have gone hand
in hand with credible measures for improving investment climate,
strengthening infrastructure and fiscal consolidation. As the country
looks to 'quickly revert to high GDP growth path' in the wake of
'uncertain times', concerns for inclusive growth targeting the
disadvantaged sections form the defining features of the Budget.
Many new initiatives have been introduced for sustained and inclusive
growth. These include setting up of Mahila Kisan Sashaktikaran
Pariyojana, Financial Stability and Development Council, Gold
Regulatory Authority, Technical Advisory Group for Unique Projects,
National Mission for Delivery of Justice and Legal Reforms,
Independent Evaluation Office and National Clean Energy Fund,
Presenting the Union Budget 2010-11 in the Lok Sabha today, the
Finance Minister Shri Pranab Mukherjee, said that three challenges
would continue to engage the Indian policy planners for next few
years. The first challenge is to quickly revert to the high GDP growth
path of 9 per cent and then find the means to cross the double digit
growth barrier. The second challenge is to consolidate recent gains in
making development more inclusive. The third challenge is to remove
weaknesses at different levels of governance and to improve public
delivery mechanism. The Budget, therefore, focuses on fiscal
consolidation, making growth more broad-based and ensuring that
supply-demand imbalances are better managed.
The Minister expressed the hope that the economy will reach 10 per
cent growth in not too distant a future. The Minister explained that
after a fall in GDP growth in 2008-09 to 6.7 per cent, the growth has
built up and 7.2 per cent growth is expected in 2009-10. The Minister
said that the recovery is very encouraging as it has come about
despite negative growth in agriculture sector. The growth rate in
manufacturing in December 2009 was 18.5 per cent, the highest in past
two decades. Similarly, there are also signs of a turnaround in the
merchandise exports with a positive growth in November and December
2009 after a decline in about twelve successive months.
Expressing concern at the emergence of double digit food inflation,
the Minister said that the Government has set in motion steps in
consultation with the State Chief Ministers to bring down the
inflation in the next few months and ensure better management of food
security.
FISCAL CONSOLIDATION
The Minister said that now that the recovery has taken roots, there is
a need to review public spending, mobilize resources and gear them
towards building the productivity of the economy.
The government will follow the recommendations of the Thirteenth
Finance Commission by capping the government debt. The Commission has
recommended a capping of the combined debt of the Centre and the
States at 68 per cent of the GDP to be achieved by 2014-15.
For the first time, the Government would target an explicit reduction
in its domestic public debt-GDP ratio. A status paper would be brought
out within six months, giving a detailed analysis of the situation and
a road map for curtailing the overall public debt. This would be
followed by an annual report on the subject.
The Finance Minister expressed the hope that a broad consensus would
be achieved on the Direct Tax Code and the Goods and Service Tax (GST)
and these would be introduced from April 2011.
IMPROVING INVESTMENT ENVIRONMENT
The Finance Minister said that a number of steps have been taken to
simplify the Foreign Direct Investment (FDI) regime. The government
also intends to make the FDI policy user-friendly by consolidating all
prior regulations and guidelines into one comprehensive document. This
would enhance clarity and predictability of our FDI policy to foreign
investors, he said.
With a view to strengthen and institutionalize the mechanism for
maintaining financial stability, Government has decided to set up an
apex-level Financial Stability and Development Council. It would
monitor macro prudential supervision of the economy, including the
functioning of large financial conglomerates.
Towards strengthening the banking system, the Budget provides Rs.16500
crore as Tier-I capital. It would ensure that the Public Sector Banks
are able to attain a minimum 8 per cent Tier-I Capital by March 2011.
Further capital would also be infused into the Regional Rural Banks
(RRBs). The Minister also informed that the RBI is considering giving
some additional banking licenses to private sector players. Non
Banking Financial Companies could also be considered, if they meet the
RBI's eligibility criteria.
AGRICULTURE GROWTH
A four-pronged strategy would be followed to spur growth in
agriculture sector. The elements of the strategy are (a) agricultural
production; (b) reduction in wastage of produce; (c) credit support to
farmers; and (d) a thrust to the food processing sector.
The Budget provides Rs.400 crore for extending the green revolution to
the eastern region of the country comprising Bihar, Chattisgarh,
Jharkhand, Eastern UP, West Bengal and Orissa, with the active
involvement of Gram Sabhas and the farming families.
60,000 'pulses and oil seed villages' will be organized in rainfed
areas with an outlay of Rs.300 crore during 2010-11. This will provide
water harvesting, watershed management and soil health facilities to
enhance to productivity of dryland farming areas. Another Rs.200 crore
have been provided in the Budget for conservation farming.
To improve the storage capacity of food grains, Food Corporation of
India is being allowed to hire godowns from private parties for a
guaranteed period of seven years. This period so far was five years.
The target for farm credit is being raised to Rs.3,75,000 crore in
2010-11 from Rs.3,25,000 crore in the current year.
The period for repayment of loans under the Debt Waiver and Debt
Relief Scheme is being extended by six months to June 30,2010.
The interest subvention for timely repayment of crop loans is being
raised from 1 per cent to 2 per cent. Thus, the effective rate of
interest for crop loans for farmers who repay their crop loan as per
schedule will now be 5 per cent per year.
Five more Mega Food Parks will be set up in addition to the 10 already
being established. External Commercial Borrowings will henceforth be
available for cold storage, farm level pre-cooling and preservation
and storage of agricultural and allied produce marine products and
meat.
INFRASTRUCTURE
The Budget provides Rs.1,73,552 crore for infrastructure, accounting
for over 46 per cent of the total Plan allocation.
The allocation for road transport is being increased by over 13 per
cent from Rs 17,520 crore to Rs.19,894 crore.
Disbursement for infrastructure by India Infrastructure Finance
Company Ltd(IIFCL) is expected to reach Rs.20,000 crore in 2010-11 as
against Rs.9,000 crore this year. Refinancing of bank landing to
infrastructure projects by IIFCL is expected to be more than double in
2010-11.
ENERGY
The Plan allocation for power sector is being more than doubled from
Rs.2,230 crore in 2009-10 to Rs.5,130 crore in 2010-11.
A Coal Regulatory Authority is proposed to be set up for creating
level playing field in the coal sector and resolving various issues.
The Plan outlay for New and Renewal Energy Ministry is being increased
by 61 per cent from Rs. 620 crore to Rs.1,000 crore, especially to
support the ambitious solar energy programme.
INCLUSIVE DEVELOPMENT
Stating that inclusive development is an act of faith for the UPA
government, the Finance Minister said that after the Right to
Information, Right to Work and Right to Education, the government is
now ready with the draft Food Security Bill. A sums of Rs.1,37,674
crore, representing 37 per cent of the total outlay, will be spent on
social sector programmes.
Plan Allocation for school education is being increased from Rs.26,800
crore to Rs.31,036 crore to support the children's rights to free and
compulsory education. In addition, States will have an access to Rs.
3,675 crore for elementary education under the Finance Commission
grant for 2010-11.
It has been decided to provide appropriate banking facilities to
habitations having population in excess of 2000 by March 2012. It is
also proposed to extend insurance and other services to the targeted
beneficiaries. These provisions are expected to cover 60,000
habitations.
Rs.66,100 crore have been provided for Rural Development. Mahatma
Gandhi National Rural Employment Guarantee Scheme gets Rs.40,100 crore
and Bharat Nirman Programme, Rs.48,000 crore.
Indira Awas Yojana gets Rs.10,000 crore. The unit cost under this
scheme is being raised to Rs.45,000 in plain areas and Rs.48500 in
hilly areas to cover the increase in cost of construction of houses.
The allocation to Backward Region Grant Fund is being enhanced by 26
per cent from Rs.5,800 crore to Rs.7,300 crore. An additional Central
assistance of Rs.1,200 crore is being provided for drought mitigation
in the Bundelkhand region.
Swarna Jayanti Shahari Rozgar Yojana gets 75 per cent increase in
allocation from Rs.3,060 crore to Rs.5,400 crore. In addition, the
allocation for Housing and Urban Poverty Alleviation is also being
raised from Rs.850 crore to Rs.1,000 crore in 2010-11.
The 1 per cent interest subvention on housing loans upto Rs.10 lakh
(where the cost of the house does not exceed Rs.20 lakh) provided in
the Budget for 2009-10 has been extended by another year.
Rajiv Awas Yojana, a scheme for housing to slum dwellers and urban
poor, gets a huge jump in allocation from Rs.150 crore last year to
Rs.1,270 crore in 2010-11.
It has been decided to set up a National Social Security Fund for
unorganized sector workers with an initial allocation of Rs.1,000
crore. This fund will support schemes for weavers, toddy tappers,
rickshaw pullers, bidi workers etc.
The Rashtriya Swasthya Bima Joyana is being extended to all Mahatma
Gandhi NREGA beneficiaries who have worked for more than 15 days
during the preceding financial year.
The Swavalamban initiative started last year, under which the
government contributes Rs.1,000 per year to each New Pension Scheme
(NPS) account, will now be available for another three years.
Plan outlay for Women and Child Development is being stepped up by 50
per cent. A Mahila Kisan Sashaktikaran Pariyojana is being launched to
meet the specific needs of women farmers.
The Plan outlay of Ministry of Social Justice and Empowerment gets a
boost of 80 per cent to Rs.4,500 crore. Besides supporting the
programmes for the target beneficiaries, the Ministry will be able to
raise the rates for scholarship schemes for SC and OBC students.
Similarly, the Ministry of Minority Affairs allocation has been raised
by 50 per cent to Rs.2,600 crore.
STRENGTHENING TRANSPARENCY AND PUBLIC ACCOUNTABILITY
The government proposes to set up a Financial Sector Legislative
Reforms Commission to rewrite and clean up the financial sector laws
to bring them in line with the requirements of the sector.
Rs.1,900 crore has been allocated for the Unique Identification
Authority of India.
A Technology Advisory Group for Unique Projects (TAGUP) is proposed to
be set up under the Chairmanship of Shri Nandan Nilekani for creation
of reliable and secure IT projects.
Defence gets an allocation of Rs.1,47,344 crore. As a one time
confidence building measure in Jammu and Kashmir about 2000 youths
will be recruited as constable in five Central Para-Military forces in
2010. Adequate funds will be made available to support the action plan
to be prepared by the Planning Commission for development of 33 left
wing extremist affected districts.
An Independent Evaluation Office is to be set up to undertake
impartial and objective assessment of various public programmes and
improve the effectiveness of public interventions in Planning
Commission.
A National Mission for Delivery of Justice and Legal Reforms is also
to be set up.
TAX PROPOSALS
The Finance Minister emphasized the need for continued Tax Reforms.
The Tax Returns form are being simplified and the Income Tax
Department is now ready to notify Saral-2 forms for individual salary
tax payers. The Sevottam project started in four cities to provide a
single window system for registration and grievance redressal will be
extended to four more cities. Two more centres will be opened for bulk
processing of Tax Returns. The Indirect Tax Administrations are being
revamped to achieve the roll out of Goods and Services Tax (GST).
Rs.1133 crore have been budgeted for a mission mode project to achieve
this.
Major relief has been provided to individual tax payers by enhancing
exemption limit and reducing tax in different slabs of personal
income.. Deduction of an additional amount of Rs.20000 for investment
in long term infrastructure bonds will be available in addition to the
existing limit of Rs.1 lakh available for specified savings.
The surcharge on domestic companies is being reduced from 10 per cent
to 7.5 per cent. However, the minimum alternate tax (MAT) is being
increased from 15 per cent to 18 per cent.
Exemptions and deductions have been provided to increase spending on research.
The investment linked deduction to new hotels of two star category and
above is being extended to give boost to investment in Tourism sector.
A one time interim relief is being provided to the housing and real
estate sector by allowing pending projects to be completed within a
period of five years instead of four years for claiming a deduction on
their profits.
The Finance Minister has proposed to partially roll back the rate
deduction in Central Excise duties and enhance the standard rate on
all non-petroleum products from 8 per cent to 10 per cent ad valorem.
The specific rates of duty applicable to Portland cement and cement
clinker are also being adjusted upwards proportionately. Similarly,
the ad valorem component of excise duty on large cars, multi-utility
vehicles and sports utility vehicles which was reduced as part of the
first stimulus package, is being increased by 2 percentage points to
22 per cent.
The basic duty of 5 per cent on crude petroleum; 7.5 per cent on
diesel and petrol and 10 per cent on other refined products is being
enhanced. The Central Excise Duty on petrol and diesel is being
enhanced by Rs.1 per litre.
Excise duty on non-smoking tobacco is being enhanced. In addition a
compounded levy scheme is being introduced by chewing tobacco and
branded unmanufactured tobacco based on the capacity of pouch making
machines.
A number of duty concessions are being proposed to support agriculture
and allied sector. Mechanised handling systems in warehouses will get
project import status with a concessional import duty of 5 per cent.
Installation and commissioning of such equipment will be fully exempt
from service tax. Concessional duty will also be applicable for cold
storages, food processing units, specified equipment for food
preservation etc. The concessional import duty to specified machinery
for use in the plantation sector is being further extended upto March
2011. Testing and certification of agricultural seed is being exempt
from service tax.
Tax exemptions have been announced for equipment used in solar systems
and wind energy system, LED lights, electric cars, cycle rickshaw,
mobile phone components and certain medical equipment.
The rate of tax on services has been retained at 10 per cent.
BUDGET ESTIMATES
The Budget Estimates 2010-11 provides for a total expenditure of Rs.
11,08,749 crore. Out of this, Rs 3,73,092 crore is plan expenditure
and Rs.7,35,657 crore is non-plan expenditure. The plan expenditure
has increased by 15 per cent while there is only 6 per cent in
increase in non-plan expenditure.
The total receipt are estimate Rs.7,46,651 crore.
The Fiscal deficit is pegged at 5.5 per cent. In the Medium Term
Fiscal Policy Statement being presented along with other Budget
documents in the House today, the rolling targets for fiscal deficit
are pegged at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13,
respectively. These projections improve upon the recommendations of
the Thirteenth Finance Commission.
bsc/aks/mp/ska/ 45/dk/kol/13:31 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET: 2010-11
Interest Subvention for exports extended for one more year : to
benefit handicrafts, carpets , handloom sectors
SEZs RECORD 127 PER CENT GROWTH IN THE FIRST THREE QUARTERS
New Delhi: February 26, 2010.
Shri Pranab Mukherjee, Union Finance Minister, while presenting the
Union Budget in Lok Sabha today, said that the government has proposed
to extend the interest subvention of 2 per cent for one more year for
exports covering handicrafts, carpets, handlooms and small and medium
enterprises (SMEs). Earlier, the government had provided interest
subvention of 2 percent in pre-shipment export credit up to March 31,
2010 in certain sectors.
Shri Mukherjee said that the Special Economic Zones (SEZs) have
attracted significant flows of domestic and foreign investments. In
the first three quarters of 2009-10, exports from SEZs recorded a
growth of 127 per cent over the corresponding period last year.
Government is committed to ensuring continued growth of SEZs to draw
investments and boost exports and employment, Shri Mukherjee added.
bsc/rj/mrs/5/dk/kol/13:31 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET 2010-11
Rs.1,73,552 crore for Infrastructure Development
New Delhi: February 26, 2010.
The Finance Minister, Shri Pranab Mukherjee in his Budget speech in
Parliament today has announced a provision of Rs.1,73,552 crore for
upgrading infrastructure in both rural and urban area. This accounts
for over 46% of the total plan allocations for infrastructure
development in the country.
Emphasising on the need for accelerated development of high quality
physical infrastructure such as roads, ports, airports and railways,
which are essential to sustaining economic growth, the Minister
announced increase in the allocation for road transport by over 13%,
from Rs.17,520 crore to Rs.19,894 crore. This, he said was required to
push the pace of implementation especially in respect of projects
being executed through Public Private Partnerships (PPP).
In this budget Rs.16,752 crore has been provided for Railways - to
modernise and expand the Railway network. This is about Rs.950 crore
more than last year which also had seen a substantial increase in the
budgetary support for Railways.
To compliment the dedicated freight corridor, the Delhi-Mumbai
Industrial Corridor project has been taken up for integrated regional
development. Preparatory activities have been completed for creation
of six industrial investment nodes with eco-friendly worldclass
infrastructure.
Disbursements by the India Infrastructure Finance Company Ltd (IIFCL),
established by the Government to provide long-term financial
assistance to infrastructure projects, are expected to touch Rs.9,000
crore by the end of March 2010 and reach around Rs.20,000 crore by
March 2011. IIFCL has also been authorised to refinance bank landing
to infrastructure projects. It has refinanced Rs.3,000 crore during
the current year and is expected to more than double that amount in
2010-11. The take-out financing scheme announced in the last budget is
expected to initially provide finance for about Rs.25,000 crore in the
next 3 years.
bsc/mc/mk/2/dk/kol/13:32 hrs.
From: Press Information Bureau Ministry of I&B <pib.kolkata@gmail.com>
Date: Fri, Feb 26, 2010 at 1:34 PM
Subject: General Budget 2010-11 part2
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET: 2010-11
FDI receives equity inflows of us $ 20.9 billion during April-December 2009
New Delhi: February 26, 2010.
Shri Pranab Mukherjee, Union Finance Minister, while presenting the
Union Budget in Lok Sabha today, said that the foreign direct
investment (FDI) inflows during the year have been steady in spite of
the decline in global capital flows. India received FDI equity inflows
of US $ 20.9 billion during April-December 2009.
The government has taken a number of steps to simplify the FDI regime,
to make it easily comprehensible to foreign investors. For the first
time, both ownership and control have been recognized as central to
the FDI policy, and methodology for calculation of indirect foreign
investment in Indian companies have been clearly defined. A consistent
policy on downstream investment has also been formulated. Another
major initiative has been the complete liberalization of pricing and
payment of technology transfer fee, trademark, brand name and royalty
payments. These payments can now be made under the automatic route.
The Minister said that the government also intends to make the FDI
policy user-friendly by consolidating all prior regulations and
guidelines into one comprehensive document. This would enhance clarity
and predictability of our FDI policy to foreign investors.
bsc/rj/mrs/6/dk/kol/13:30 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET 2010-11
Summary of Union Budget 2010-11
New Delhi: February 26, 2010.
The Union Budget this year has aimed to focus on inclusive growth and
insuring food security. These concerns for aam aadami have gone hand
in hand with credible measures for improving investment climate,
strengthening infrastructure and fiscal consolidation. As the country
looks to 'quickly revert to high GDP growth path' in the wake of
'uncertain times', concerns for inclusive growth targeting the
disadvantaged sections form the defining features of the Budget.
Many new initiatives have been introduced for sustained and inclusive
growth. These include setting up of Mahila Kisan Sashaktikaran
Pariyojana, Financial Stability and Development Council, Gold
Regulatory Authority, Technical Advisory Group for Unique Projects,
National Mission for Delivery of Justice and Legal Reforms,
Independent Evaluation Office and National Clean Energy Fund,
Presenting the Union Budget 2010-11 in the Lok Sabha today, the
Finance Minister Shri Pranab Mukherjee, said that three challenges
would continue to engage the Indian policy planners for next few
years. The first challenge is to quickly revert to the high GDP growth
path of 9 per cent and then find the means to cross the double digit
growth barrier. The second challenge is to consolidate recent gains in
making development more inclusive. The third challenge is to remove
weaknesses at different levels of governance and to improve public
delivery mechanism. The Budget, therefore, focuses on fiscal
consolidation, making growth more broad-based and ensuring that
supply-demand imbalances are better managed.
The Minister expressed the hope that the economy will reach 10 per
cent growth in not too distant a future. The Minister explained that
after a fall in GDP growth in 2008-09 to 6.7 per cent, the growth has
built up and 7.2 per cent growth is expected in 2009-10. The Minister
said that the recovery is very encouraging as it has come about
despite negative growth in agriculture sector. The growth rate in
manufacturing in December 2009 was 18.5 per cent, the highest in past
two decades. Similarly, there are also signs of a turnaround in the
merchandise exports with a positive growth in November and December
2009 after a decline in about twelve successive months.
Expressing concern at the emergence of double digit food inflation,
the Minister said that the Government has set in motion steps in
consultation with the State Chief Ministers to bring down the
inflation in the next few months and ensure better management of food
security.
FISCAL CONSOLIDATION
The Minister said that now that the recovery has taken roots, there is
a need to review public spending, mobilize resources and gear them
towards building the productivity of the economy.
The government will follow the recommendations of the Thirteenth
Finance Commission by capping the government debt. The Commission has
recommended a capping of the combined debt of the Centre and the
States at 68 per cent of the GDP to be achieved by 2014-15.
For the first time, the Government would target an explicit reduction
in its domestic public debt-GDP ratio. A status paper would be brought
out within six months, giving a detailed analysis of the situation and
a road map for curtailing the overall public debt. This would be
followed by an annual report on the subject.
The Finance Minister expressed the hope that a broad consensus would
be achieved on the Direct Tax Code and the Goods and Service Tax (GST)
and these would be introduced from April 2011.
IMPROVING INVESTMENT ENVIRONMENT
The Finance Minister said that a number of steps have been taken to
simplify the Foreign Direct Investment (FDI) regime. The government
also intends to make the FDI policy user-friendly by consolidating all
prior regulations and guidelines into one comprehensive document. This
would enhance clarity and predictability of our FDI policy to foreign
investors, he said.
With a view to strengthen and institutionalize the mechanism for
maintaining financial stability, Government has decided to set up an
apex-level Financial Stability and Development Council. It would
monitor macro prudential supervision of the economy, including the
functioning of large financial conglomerates.
Towards strengthening the banking system, the Budget provides Rs.16500
crore as Tier-I capital. It would ensure that the Public Sector Banks
are able to attain a minimum 8 per cent Tier-I Capital by March 2011.
Further capital would also be infused into the Regional Rural Banks
(RRBs). The Minister also informed that the RBI is considering giving
some additional banking licenses to private sector players. Non
Banking Financial Companies could also be considered, if they meet the
RBI's eligibility criteria.
AGRICULTURE GROWTH
A four-pronged strategy would be followed to spur growth in
agriculture sector. The elements of the strategy are (a) agricultural
production; (b) reduction in wastage of produce; (c) credit support to
farmers; and (d) a thrust to the food processing sector.
The Budget provides Rs.400 crore for extending the green revolution to
the eastern region of the country comprising Bihar, Chattisgarh,
Jharkhand, Eastern UP, West Bengal and Orissa, with the active
involvement of Gram Sabhas and the farming families.
60,000 'pulses and oil seed villages' will be organized in rainfed
areas with an outlay of Rs.300 crore during 2010-11. This will provide
water harvesting, watershed management and soil health facilities to
enhance to productivity of dryland farming areas. Another Rs.200 crore
have been provided in the Budget for conservation farming.
To improve the storage capacity of food grains, Food Corporation of
India is being allowed to hire godowns from private parties for a
guaranteed period of seven years. This period so far was five years.
The target for farm credit is being raised to Rs.3,75,000 crore in
2010-11 from Rs.3,25,000 crore in the current year.
The period for repayment of loans under the Debt Waiver and Debt
Relief Scheme is being extended by six months to June 30,2010.
The interest subvention for timely repayment of crop loans is being
raised from 1 per cent to 2 per cent. Thus, the effective rate of
interest for crop loans for farmers who repay their crop loan as per
schedule will now be 5 per cent per year.
Five more Mega Food Parks will be set up in addition to the 10 already
being established. External Commercial Borrowings will henceforth be
available for cold storage, farm level pre-cooling and preservation
and storage of agricultural and allied produce marine products and
meat.
INFRASTRUCTURE
The Budget provides Rs.1,73,552 crore for infrastructure, accounting
for over 46 per cent of the total Plan allocation.
The allocation for road transport is being increased by over 13 per
cent from Rs 17,520 crore to Rs.19,894 crore.
Disbursement for infrastructure by India Infrastructure Finance
Company Ltd(IIFCL) is expected to reach Rs.20,000 crore in 2010-11 as
against Rs.9,000 crore this year. Refinancing of bank landing to
infrastructure projects by IIFCL is expected to be more than double in
2010-11.
ENERGY
The Plan allocation for power sector is being more than doubled from
Rs.2,230 crore in 2009-10 to Rs.5,130 crore in 2010-11.
A Coal Regulatory Authority is proposed to be set up for creating
level playing field in the coal sector and resolving various issues.
The Plan outlay for New and Renewal Energy Ministry is being increased
by 61 per cent from Rs. 620 crore to Rs.1,000 crore, especially to
support the ambitious solar energy programme.
INCLUSIVE DEVELOPMENT
Stating that inclusive development is an act of faith for the UPA
government, the Finance Minister said that after the Right to
Information, Right to Work and Right to Education, the government is
now ready with the draft Food Security Bill. A sums of Rs.1,37,674
crore, representing 37 per cent of the total outlay, will be spent on
social sector programmes.
Plan Allocation for school education is being increased from Rs.26,800
crore to Rs.31,036 crore to support the children's rights to free and
compulsory education. In addition, States will have an access to Rs.
3,675 crore for elementary education under the Finance Commission
grant for 2010-11.
It has been decided to provide appropriate banking facilities to
habitations having population in excess of 2000 by March 2012. It is
also proposed to extend insurance and other services to the targeted
beneficiaries. These provisions are expected to cover 60,000
habitations.
Rs.66,100 crore have been provided for Rural Development. Mahatma
Gandhi National Rural Employment Guarantee Scheme gets Rs.40,100 crore
and Bharat Nirman Programme, Rs.48,000 crore.
Indira Awas Yojana gets Rs.10,000 crore. The unit cost under this
scheme is being raised to Rs.45,000 in plain areas and Rs.48500 in
hilly areas to cover the increase in cost of construction of houses.
The allocation to Backward Region Grant Fund is being enhanced by 26
per cent from Rs.5,800 crore to Rs.7,300 crore. An additional Central
assistance of Rs.1,200 crore is being provided for drought mitigation
in the Bundelkhand region.
Swarna Jayanti Shahari Rozgar Yojana gets 75 per cent increase in
allocation from Rs.3,060 crore to Rs.5,400 crore. In addition, the
allocation for Housing and Urban Poverty Alleviation is also being
raised from Rs.850 crore to Rs.1,000 crore in 2010-11.
The 1 per cent interest subvention on housing loans upto Rs.10 lakh
(where the cost of the house does not exceed Rs.20 lakh) provided in
the Budget for 2009-10 has been extended by another year.
Rajiv Awas Yojana, a scheme for housing to slum dwellers and urban
poor, gets a huge jump in allocation from Rs.150 crore last year to
Rs.1,270 crore in 2010-11.
It has been decided to set up a National Social Security Fund for
unorganized sector workers with an initial allocation of Rs.1,000
crore. This fund will support schemes for weavers, toddy tappers,
rickshaw pullers, bidi workers etc.
The Rashtriya Swasthya Bima Joyana is being extended to all Mahatma
Gandhi NREGA beneficiaries who have worked for more than 15 days
during the preceding financial year.
The Swavalamban initiative started last year, under which the
government contributes Rs.1,000 per year to each New Pension Scheme
(NPS) account, will now be available for another three years.
Plan outlay for Women and Child Development is being stepped up by 50
per cent. A Mahila Kisan Sashaktikaran Pariyojana is being launched to
meet the specific needs of women farmers.
The Plan outlay of Ministry of Social Justice and Empowerment gets a
boost of 80 per cent to Rs.4,500 crore. Besides supporting the
programmes for the target beneficiaries, the Ministry will be able to
raise the rates for scholarship schemes for SC and OBC students.
Similarly, the Ministry of Minority Affairs allocation has been raised
by 50 per cent to Rs.2,600 crore.
STRENGTHENING TRANSPARENCY AND PUBLIC ACCOUNTABILITY
The government proposes to set up a Financial Sector Legislative
Reforms Commission to rewrite and clean up the financial sector laws
to bring them in line with the requirements of the sector.
Rs.1,900 crore has been allocated for the Unique Identification
Authority of India.
A Technology Advisory Group for Unique Projects (TAGUP) is proposed to
be set up under the Chairmanship of Shri Nandan Nilekani for creation
of reliable and secure IT projects.
Defence gets an allocation of Rs.1,47,344 crore. As a one time
confidence building measure in Jammu and Kashmir about 2000 youths
will be recruited as constable in five Central Para-Military forces in
2010. Adequate funds will be made available to support the action plan
to be prepared by the Planning Commission for development of 33 left
wing extremist affected districts.
An Independent Evaluation Office is to be set up to undertake
impartial and objective assessment of various public programmes and
improve the effectiveness of public interventions in Planning
Commission.
A National Mission for Delivery of Justice and Legal Reforms is also
to be set up.
TAX PROPOSALS
The Finance Minister emphasized the need for continued Tax Reforms.
The Tax Returns form are being simplified and the Income Tax
Department is now ready to notify Saral-2 forms for individual salary
tax payers. The Sevottam project started in four cities to provide a
single window system for registration and grievance redressal will be
extended to four more cities. Two more centres will be opened for bulk
processing of Tax Returns. The Indirect Tax Administrations are being
revamped to achieve the roll out of Goods and Services Tax (GST).
Rs.1133 crore have been budgeted for a mission mode project to achieve
this.
Major relief has been provided to individual tax payers by enhancing
exemption limit and reducing tax in different slabs of personal
income.. Deduction of an additional amount of Rs.20000 for investment
in long term infrastructure bonds will be available in addition to the
existing limit of Rs.1 lakh available for specified savings.
The surcharge on domestic companies is being reduced from 10 per cent
to 7.5 per cent. However, the minimum alternate tax (MAT) is being
increased from 15 per cent to 18 per cent.
Exemptions and deductions have been provided to increase spending on research.
The investment linked deduction to new hotels of two star category and
above is being extended to give boost to investment in Tourism sector.
A one time interim relief is being provided to the housing and real
estate sector by allowing pending projects to be completed within a
period of five years instead of four years for claiming a deduction on
their profits.
The Finance Minister has proposed to partially roll back the rate
deduction in Central Excise duties and enhance the standard rate on
all non-petroleum products from 8 per cent to 10 per cent ad valorem.
The specific rates of duty applicable to Portland cement and cement
clinker are also being adjusted upwards proportionately. Similarly,
the ad valorem component of excise duty on large cars, multi-utility
vehicles and sports utility vehicles which was reduced as part of the
first stimulus package, is being increased by 2 percentage points to
22 per cent.
The basic duty of 5 per cent on crude petroleum; 7.5 per cent on
diesel and petrol and 10 per cent on other refined products is being
enhanced. The Central Excise Duty on petrol and diesel is being
enhanced by Rs.1 per litre.
Excise duty on non-smoking tobacco is being enhanced. In addition a
compounded levy scheme is being introduced by chewing tobacco and
branded unmanufactured tobacco based on the capacity of pouch making
machines.
A number of duty concessions are being proposed to support agriculture
and allied sector. Mechanised handling systems in warehouses will get
project import status with a concessional import duty of 5 per cent.
Installation and commissioning of such equipment will be fully exempt
from service tax. Concessional duty will also be applicable for cold
storages, food processing units, specified equipment for food
preservation etc. The concessional import duty to specified machinery
for use in the plantation sector is being further extended upto March
2011. Testing and certification of agricultural seed is being exempt
from service tax.
Tax exemptions have been announced for equipment used in solar systems
and wind energy system, LED lights, electric cars, cycle rickshaw,
mobile phone components and certain medical equipment.
The rate of tax on services has been retained at 10 per cent.
BUDGET ESTIMATES
The Budget Estimates 2010-11 provides for a total expenditure of Rs.
11,08,749 crore. Out of this, Rs 3,73,092 crore is plan expenditure
and Rs.7,35,657 crore is non-plan expenditure. The plan expenditure
has increased by 15 per cent while there is only 6 per cent in
increase in non-plan expenditure.
The total receipt are estimate Rs.7,46,651 crore.
The Fiscal deficit is pegged at 5.5 per cent. In the Medium Term
Fiscal Policy Statement being presented along with other Budget
documents in the House today, the rolling targets for fiscal deficit
are pegged at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13,
respectively. These projections improve upon the recommendations of
the Thirteenth Finance Commission.
bsc/aks/mp/ska/ 45/dk/kol/13:31 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET: 2010-11
Interest Subvention for exports extended for one more year : to
benefit handicrafts, carpets , handloom sectors
SEZs RECORD 127 PER CENT GROWTH IN THE FIRST THREE QUARTERS
New Delhi: February 26, 2010.
Shri Pranab Mukherjee, Union Finance Minister, while presenting the
Union Budget in Lok Sabha today, said that the government has proposed
to extend the interest subvention of 2 per cent for one more year for
exports covering handicrafts, carpets, handlooms and small and medium
enterprises (SMEs). Earlier, the government had provided interest
subvention of 2 percent in pre-shipment export credit up to March 31,
2010 in certain sectors.
Shri Mukherjee said that the Special Economic Zones (SEZs) have
attracted significant flows of domestic and foreign investments. In
the first three quarters of 2009-10, exports from SEZs recorded a
growth of 127 per cent over the corresponding period last year.
Government is committed to ensuring continued growth of SEZs to draw
investments and boost exports and employment, Shri Mukherjee added.
bsc/rj/mrs/5/dk/kol/13:31 hrs.
Press Information Bureau
Government of India
* * * * *
Ministry of Finance GENERAL BUDGET 2010-11
Rs.1,73,552 crore for Infrastructure Development
New Delhi: February 26, 2010.
The Finance Minister, Shri Pranab Mukherjee in his Budget speech in
Parliament today has announced a provision of Rs.1,73,552 crore for
upgrading infrastructure in both rural and urban area. This accounts
for over 46% of the total plan allocations for infrastructure
development in the country.
Emphasising on the need for accelerated development of high quality
physical infrastructure such as roads, ports, airports and railways,
which are essential to sustaining economic growth, the Minister
announced increase in the allocation for road transport by over 13%,
from Rs.17,520 crore to Rs.19,894 crore. This, he said was required to
push the pace of implementation especially in respect of projects
being executed through Public Private Partnerships (PPP).
In this budget Rs.16,752 crore has been provided for Railways - to
modernise and expand the Railway network. This is about Rs.950 crore
more than last year which also had seen a substantial increase in the
budgetary support for Railways.
To compliment the dedicated freight corridor, the Delhi-Mumbai
Industrial Corridor project has been taken up for integrated regional
development. Preparatory activities have been completed for creation
of six industrial investment nodes with eco-friendly worldclass
infrastructure.
Disbursements by the India Infrastructure Finance Company Ltd (IIFCL),
established by the Government to provide long-term financial
assistance to infrastructure projects, are expected to touch Rs.9,000
crore by the end of March 2010 and reach around Rs.20,000 crore by
March 2011. IIFCL has also been authorised to refinance bank landing
to infrastructure projects. It has refinanced Rs.3,000 crore during
the current year and is expected to more than double that amount in
2010-11. The take-out financing scheme announced in the last budget is
expected to initially provide finance for about Rs.25,000 crore in the
next 3 years.
bsc/mc/mk/2/dk/kol/13:32 hrs.
--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/
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